Sergio Massa holds a diametrically opposing viewpoint on central bank digital currencies compared to Javier Milei, a proponent of Bitcoin who aims to abolish Argentina’s central bank.
Sergio Massa, a candidate vying for the Argentine presidency, has made a bold commitment to introduce a central bank digital currency (CBDC) if he attains the office. His primary objective is to address Argentina’s persistent and debilitating inflation crisis.
During an October 2nd presidential debate, the second-leading candidate in Argentina articulated his stance on inflation: “I am acutely aware of the gravity of Argentina’s inflation problem.” He went on to outline his plan for combatting this economic challenge: “We are embarking on the launch of a digital currency in Argentina… A comprehensive initiative encompassing the entirety of our nation, accompanied by legislation that facilitates the repatriation and unfettered utilization of overseas funds, all without the imposition of additional taxes.”
Massa, who currently serves as the Minister of Economy, unequivocally rejected the notion of adopting the United States dollar as Argentina’s currency. He emphasized, “Dollarization only serves to stoke the allure of the dollar. Let us demonstrate our patriotism by safeguarding our national currency and refraining from advocating the use of the U.S. dollar.”
Argentina’s general election is scheduled for October 22nd, and it appears that Sergio Massa is trailing slightly behind Javier Milei, a proponent of Bitcoin and a staunch critic of the central bank, who emerged victorious in Argentina’s primary election in August.
According to data from the American think tank AS/COA, Massa is expected to garner the most support in the Buenos Aires province, home to 16.6 million of the country’s 46 million residents, whereas Milei enjoys significant backing in the rural regions of the nation.
Milei has consistently advocated for the adoption of the United States dollar as Argentina’s official currency. As an economist and libertarian, he has harbored deep reservations about the role of central banks. Part of his campaign pledge is the complete abolition of Argentina’s central bank. Milei has previously referred to Bitcoin as a response to “central bank manipulation” and has criticized the Argentine peso for enabling political exploitation through inflation.
Patricia Bullrich, the third-ranking presidential candidate in Argentina, has reportedly proposed a currency system where the Argentine peso and the U.S. dollar coexist as legal tender in the event of her election victory.
The Argentine peso has experienced a staggering devaluation of over 99% against the U.S. dollar since December 2023, underlining the severity of the country’s economic challenges.
Most statistical indicators underscore Argentina’s inflation problem as one of the most severe in the world, surpassed only by Venezuela and Lebanon.